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in government money, where the terms of bank deposit contracts are affected by the liquidity insurance available in … contracts combined with a central bank lender-of-last-resort facility to promote efficient liquidity insurance and a panic … framework in which fractional reserve banks emerge in equilibrium, where bank assets are funded with liabilities made demandable …
Persistent link: https://www.econbiz.de/10011780925
bank risk taking, and its interaction with a regulator's optimization problem. The regulator uses its macroprudential tool … changes to partly "pass through" to bank soundness by not neutralizing the risk-taking channel of monetary policy. Thus …How does monetary policy impact upon macroprudential regulation? This paper models monetary policy's transmission to …
Persistent link: https://www.econbiz.de/10011797689
World Bank's Ease of Doing Business (EODB) index rankings. …
Persistent link: https://www.econbiz.de/10012292103
Under the Single Supervisory Mechanism (SSM), introduced in 2014, systemically important euro area banks with combined assets of about 21,000 billion euros are directly supervised by the ECB. We examine from a static and a dynamic perspective how this fundamental shift to unified supervision...
Persistent link: https://www.econbiz.de/10014416089
Persistent link: https://www.econbiz.de/10013465027
-prudential supervision is called for. We characterize the optimal regulation, which takes the form of a minimum liquidity requirement coupled … instruments is endogenous and characterize the structure of optimal bailouts. -- Monetary Policy ; Funding Liquidity Risk … correlate their risk exposures. Second, private borrowers may deliberately choose to increase their interest-rate sensitivity …
Persistent link: https://www.econbiz.de/10008821884
Mortgages are prime examples of long-term nominal loans. As a result, under incomplete asset markets, monetary policy can affect household decisions through the cost of new mortgage borrowing and the value of payments on outstanding debt. These channels are distinct from the transmission through...
Persistent link: https://www.econbiz.de/10011306278
Standard models used for monetary policy analysis rely on sticky prices. Recently, the literature started to explore also nominal debt contracts. Focusing on mortgages, this paper compares the two channels of transmission within a common framework. The sticky price channel is dominant when...
Persistent link: https://www.econbiz.de/10011524379
The last global crisis brought the monetary policy risk-taking channel to the fore, arguing that lingering low interest … is the first effort to empirically investigate the potential existence of the monetary policy risk-taking channel in … Bank of the Republic of Macedonia (NBRM), which is complemented with data from banks' balance sheets. By using pooled OLS …
Persistent link: https://www.econbiz.de/10011944421
Evidence on the effects of negative interest rates on bank lending is inconclusive so far. By applying a difference … the introduction of a negative deposit facility rate by the European Central Bank led to an increased credit supply by … clients with higher probabilities of default, confirming the previous found increased risk-taking behavior in negative …
Persistent link: https://www.econbiz.de/10013332415